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Introduction

The dairy industry continues to evolve at a rapid pace, including the complexities of Fonterra.

The purpose of this part of the booklet is to provide a practical outline of relevant issues in the New Zealand dairy sector faced by rural professional advisors on a regular basis. There are new issues to be dealt with following the Fonterra Co-operative Group Limited’s (“Fonterra”) restructure approved in 2009, with further implications likely from the capital restructure to implement Trading Among Farmers (“TAF”).

The practice of rural law continues to rapidly evolve with more complexity. Dairy farmers are facing rapid changes in Fonterra, more rules around the care of livestock, requirements for resource consents to operate a dairy farm depending on the regional area farmed in, nutrient bench marking, more regulation about what can and cannot be done on a dairy farm and much more.

To be able to prudently practice in this area one must be fully informed of the relevant issues to ensure that the legal documentation we are creating for clients is up to date and well understood by those involved.

The following areas are addressed to better understand relevant issues of today:

Fonterra Capacity Adjustment Charge

Implications of Fonterra Dividend Payments

Growth Milk Contracts

Fonterra’s proposed Trading Among Farmers

Permitted Activities and Resource Consents

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